CEREALS CO-RESPONSIBILITY LEVY (Hansard, 25 October 1988)

§ Baroness Trumpington

I am glad to say that we have been able to modify the rules for calculating the rate of co-responsibility levy paid on cereals sold with a high moisture content. Up until now, levy has been payable on the delivered weight of the grain, regardless of the moisture level. This has meant that where grain has been delivered with a high moisture content the tonnage used to calculate the amount of levy due has sometimes been higher than the tonnage on which the grower has been paid. I was concerned when evidence came to light that, as a result of a different interpretation of the Community rules, different arrangements were in force in some other member states. We took steps straight away to get Commission agreement to change our rules, which has now been achieved.

In future, therefore if a grower is paid on a lower tonnage of grain than the delivered tonnage, levy will only be payable on that lower tonnage. These new rules come into effect immediately and will apply to all transactions that have taken place since the beginning of the marketing year. The Intervention Board will issue details of the changes as soon as possible. Anyone who has paid too much levy under the previous system will be eligible for a refund; details of how to apply will be announced shortly.

These changes will ensure that our growers are not treated less favourably than any growers anywhere elsewhere in the Community; and as such will, I hope, be welcomed.